The FTSE 100 Index rose 28.90, or 0.5%, to 6.050 points today, led by bid speculation from companies such as Cadbury Schweppes and Cairn Energy.
Cadbury Schweppes led the risers, up 2.03% to £5.28, after it was tipped as a possible private equity target, while today’s tie up between RHM and Premier Foods also reflected well on the chocolate maker.
Cairn Energy rose 2.09% to £21 as dealers anticipated the upcoming float of its Indian business.
Hopes the interest rate cycle peaking could mean the current boom continuing and the expected rush of REIT conversions took Land Securities up 1.37% to £21.40 and Slough Estates up 1.51% to £7.38.
In the US, the Dow Jones industrial average is up 46.38 points, or 0.38%, at 12,240.51 points after several major corporate deals pointed to optimism about the economy.
Shares of Mellon Financial have risen 4.9% to $42.01, while shares of the Bank of New York have jumped 9.8 percent to $38.94 after the bank announced plans to buy Mellon for about $16.5bn to create the world's largest securities servicing and asset management firm.
Agere shares have risen nearly 10% to $19.54, while LSI shares have dropped 12.2% to $9.26.
Pfizer shares have dropped more than 14% to $24.33, wiping out more than $30bn in the drug maker's market value, after the news it had stopped development of experimental cholesterol drug torcetrapib.IFAonline
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till